Blackstone and Goldman Sachs' asset management arm are leading a nearly $1 billion private debt deal to help fund Advent International’s acquisition of Israeli software provider Sapiens International, source says https://t.co/0bDVllDNzV ...

Economic Outlook & Policy - The discussion revolves around the US economy's performance and the impact of President Trump's policies, particularly tariffs, on the market and inflation [3][4][5] - Experts initially predicted significant negative impacts from tariffs, including potential recession, especially if tariffs reached levels like 145% [6][9] - However, after 90 days of tariffs, inflation has not risen as drastically as predicted, suggesting the market is responding positively [10] - Tariffs are being used as a negotiation tactic to bring countries to the table and recalibrate government financing [8][9] Trade & Negotiations - Trade deals with countries like Japan, Philippines, and the EU are considered wins, largely attributed to the use of tariffs as leverage [8] - There is optimism for a favorable trade deal with China in the coming months [8] - The aim is to encourage countries to invest in the US market and secure better trade terms [9][14] Business & Investment - Capital expenditures are increasing, which is seen as a positive indicator for future economic growth [20] - The US is being recentered as the focal point of the global economy, attracting investment [14] - Real wages for working people have increased by $1,100 this year [19] Presidential Impact & Perception - The president's approach is viewed as prioritizing what's best for America, focusing on both capital and labor, and aiming for market success and wage growth [7] - There are divided opinions on the president's strategies, with some trusting his negotiation skills and others questioning his understanding of economic matters [11][17] - The president's actions have caused discomfort and confusion among some supporters, requiring them to defend certain policies [17][18]

>> NEWSMAKERS AND MARKET MOVERS, THIS IS "THE PULSE WITH FRANCINE LACQUA. " FRANCINE: GOOD MORNING AND WELCOME TO "THE PULSE. " TREASURY SECRETARY SCOTT BESSENT HAS DISMISSED THE POSSIBILITY THAT CHINESE INVESTMENTS IN THE U.S. COULD BE PART OF ANY TRADE PACT. CHINA COULD MAKE SIMILAR PLEDGES LIKE JAPAN, SOUTH KOREA, AND EU AS PART OF THEIR TRADE AGREEMENTS. SCOTT BESSENT SAID CRITICAL INDUSTRIES NEEDED TO BE " RESHORED AWAY FROM CHINA." HE DID NOT SPECIFY WHETHER THOSE INDUSTRIES WERE SEMICONDUCTORS OR PHA ...

Political Commentary & Economic Data Integrity - The discussion revolves around Donald Trump's criticism of economist Paul Krugman and others, labeling them as "deranged" for their economic predictions [1][2][3][5]. - Concerns are raised about potential political interference with the Bureau of Labor Statistics (BLS) and the possibility of manipulating economic data [6][7][8]. - The integrity of economic data is crucial, and any attempt to "cook the books" at the BLS would be a significant undertaking due to the dedication of civil servants [8][9]. - The historical precedent of presidents seeking serious economic advice from economists is highlighted, contrasting it with the current situation [10]. Economic Competence & Political Alignment - The discussion points out a preference within a certain political sphere for individuals who may lack competence in economic analysis [12][13][14]. - Competent professionals are perceived as a threat because they might refuse to manipulate data or make false claims [14].

Inflation Analysis - CPI came in at 27%, seemingly above target, while the Personal Consumption Expenditures Index runs lower at 22% to 24% [1][2] - Annualized inflation based on a six-month basis since Trump took office shows 19% [2] - Energy prices are down and food prices are flat, indicating positive signs [2] - Shelter costs are up, but this is considered a lagging indicator [3] Tariff Impact and Trade - Foreign countries, especially those with large trade deficits with the US, are absorbing the tariffs because the US is their biggest market [9][10] - Goldman Sachs' research indicates that US consumers have absorbed about 22% of tariff costs, while businesses absorbed 64% [11] Data Trust and Government Reports - The speaker expresses distrust in BLS data, citing past inaccuracies that punished Trump's administration and inflated figures during Biden's term [17][18] - There's a suggestion to rely more on private research, questioning the government's role in providing economic data [16] Economic Outlook and Policy - The message to Jay Powell is to acknowledge the positive inflation situation [4] - Concerns are raised about Jay Powell's performance, citing three major blunders costing the economy tens of billions of dollars [22]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Vonnie Quinn taking you through to that closing bell with a global simulcast. It started Carol Massar in the radio booth.David Gura in today for Tim Stenovec, a big welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube. On a day where we see the S&P up 1% at a record high, the Russell 2000 up 3% on the day. Carol Massar And that's all because CPI rose.Well, you know ...

Core Viewpoint - President Trump criticized Goldman Sachs CEO David Solomon for the bank's economic predictions regarding tariffs, suggesting he should either replace his economist or focus on his DJ career [2][3]. Group 1: Tariff Impact - Trump claimed that tariffs have not caused inflation or other issues for America, asserting that they have resulted in significant revenue for the federal government [2]. - According to Goldman Sachs' chief economist Jan Hatzius, American consumers absorbed 22% of tariff costs through June, with projections indicating this share could rise to 67% by October if the impact of later tariffs mirrors that of earlier ones [4]. Group 2: Goldman Sachs' Predictions - Trump accused Goldman Sachs of making inaccurate predictions regarding market repercussions and tariffs, stating that the bank's assessments have been consistently wrong [3]. - The president did not specify which economist he believes Solomon should replace, but emphasized the need for more accurate economic forecasting [3].

Core Insights - Goldman Sachs has a robust balance sheet with cash and cash equivalents of $153 billion and total unsecured debt of $349 billion as of June 30, 2025, with only $69 billion in near-term borrowings [1][9] Financial Strength - The company holds investment-grade long-term debt ratings of A/A2/BBB+ and a stable outlook from major rating agencies, indicating strong creditworthiness and the ability to meet debt obligations during economic downturns [2] - Goldman Sachs has demonstrated impressive capital distribution activities, raising its dividend by 33.3% to $4 per share post-2025 stress test, with an annualized dividend growth rate of 22.04% over the past five years and a payout ratio of 26% [3][9] Share Repurchase Programs - The company has an active share repurchase plan, with a $40 billion program approved in Q1 2025 and an earlier $30 billion program announced in February 2023, leaving $40.6 billion available under authorization by the end of Q2 2025 [4] Competitive Positioning - Compared to JPMorgan and Morgan Stanley, Goldman Sachs maintains a strong liquidity position, with JPMorgan having total debt of $485.1 billion and Morgan Stanley holding long-term debt of $320.1 billion [5][6] Price Performance and Valuation - Goldman Sachs shares have increased by 26.8% year-to-date, outperforming the industry growth of 22.2% [7] - The company trades at a forward price-to-earnings (P/E) ratio of 14.45X, slightly above the industry average of 14.39X [11] Earnings and Sales Estimates - The Zacks Consensus Estimate indicates year-over-year earnings growth of 12.6% for 2025 and 14.9% for 2026, with sales growth of 6.3% for 2025 and 6.5% for 2026, both estimates revised upward in the past 30 days [14]

Core Viewpoint - Goldman Sachs has experienced a significant share price increase of 26.8% year to date, outperforming its peers and the industry average, driven by strategic shifts and strong performance in investment banking and asset management [1][9]. Group 1: Financial Performance - Goldman Sachs' investment banking (IB) revenues surged by 24% in 2024, reaching $7.73 billion, rebounding from previous declines due to geopolitical tensions and economic uncertainties [10]. - The Global Banking and Markets segment has shown a compounded annual growth rate (CAGR) of 3.7% from 2022 to 2024, with a 16% year-over-year increase in the first half of 2025 [6]. - The Asset and Wealth Management (AWM) division's net revenues experienced a CAGR of 9.9% from 2022 to 2024, although it saw a 3% decline year-over-year in the first half of 2025 due to market uncertainties [7][8]. Group 2: Strategic Initiatives - The company is exiting its non-core consumer banking business to concentrate on Global Banking and Markets and AWM, which are viewed as more stable revenue sources [5][9]. - Goldman Sachs is exploring acquisitions to expand its AWM footprint, emphasizing fee-based revenue streams and targeting ultra-high-net-worth individuals [8]. Group 3: Capital Management - Goldman Sachs maintains a strong liquidity profile with cash and cash equivalents of $153 billion and near-term borrowings of $69 billion, allowing for aggressive capital returns to shareholders [13]. - The quarterly dividend was increased to $4.00 per common share, a 33.3% rise from the previous payout, reflecting a commitment to returning capital to shareholders [14]. Group 4: Market Position and Valuation - The Zacks Consensus Estimate projects year-over-year sales growth of 6.2% and 6.5% for 2025 and 2026, respectively, with earnings growth estimates of 12.4% and 14.9% for the same periods [16]. - Goldman Sachs' stock is trading at a forward price/earnings (P/E) ratio of 14.45X, slightly above the industry average of 14.39X, indicating a premium valuation compared to peers [18]. Group 5: Future Outlook - The company's strong first-half 2025 performance aligns with its mid-term goals of achieving a 14-16% return on equity (ROE) and a 60% efficiency ratio, supported by a robust deal pipeline in investment banking [21][22]. - The evolving macroeconomic environment, particularly regarding tariff policies and inflation, poses challenges that could impact performance, necessitating careful navigation by the company [22][23].

The impact of President Donald Trump’s tariffs on consumer prices is just getting started, according to research by Goldman Sachs https://t.co/tExqPN6Kdx ...